Its time to talk about the Pound which is now obviously driven by Brexit and Brexit only.
There are two ways for the price action to unfold should there be further negative pressure from Brexit news(which there will be, i am sure)
The fundamental drivers, which determine the general direction and the force of the movements, do not change the technical nature of the movements themselves.
And, as we may see the Pound has been falling nicely within a declining corridor for some time. However, we have reached a relatively strong psychological
resistance area of 1.209 to 1.2
Two different sequences of differently colored arrows depict two possible ways of the price action around the resistance on the negative news
One is that the price bouncing from the resistance area will wiggle a bit still within the falling corridor making a kind of a descending triangle before falling below the area
if the news get too gloomy, however, we might see a straight fall through the resistance, a pullback and a hellish march to the new lows.
Be careful with the shorts, as the market is nervous and news driven. Make sufficiently large stops,
But, after the pullback to the resistance after the bearish breakout there will be a perfect short opportunity!
You might want to consider shorting with the put options, as they secure you from possible GAPS, for which your stops are not an efficient defense!
There are two ways for the price action to unfold should there be further negative pressure from Brexit news(which there will be, i am sure)
The fundamental drivers, which determine the general direction and the force of the movements, do not change the technical nature of the movements themselves.
And, as we may see the Pound has been falling nicely within a declining corridor for some time. However, we have reached a relatively strong psychological
resistance area of 1.209 to 1.2
Two different sequences of differently colored arrows depict two possible ways of the price action around the resistance on the negative news
One is that the price bouncing from the resistance area will wiggle a bit still within the falling corridor making a kind of a descending triangle before falling below the area
if the news get too gloomy, however, we might see a straight fall through the resistance, a pullback and a hellish march to the new lows.
Be careful with the shorts, as the market is nervous and news driven. Make sufficiently large stops,
But, after the pullback to the resistance after the bearish breakout there will be a perfect short opportunity!
You might want to consider shorting with the put options, as they secure you from possible GAPS, for which your stops are not an efficient defense!